The Caribbean’s experience – A Case for Liberalization · 2019. 5. 15. · Saheed Sulaman...
Transcript of The Caribbean’s experience – A Case for Liberalization · 2019. 5. 15. · Saheed Sulaman...
The Caribbean’s experience – A Case for Liberalization
Saheed Sulaman Director Air Transport Management, GCAA
May 8, 2019
Source: IDB
Caribbean territories
• 34 countries, islands
• ≈ 44 million people
• highly dependent on air transport
There is a low concentration of air traffic and no large airport hubs in the region.
Small and isolated nature countries strong dependence on tourism highly seasonal and driven by inbound traffic to the region
Traffic forecast: Average annual growth rates 2013-2032 between Caribbean (traffic growth CAGR 2013-2032, %)
Source: Airbus; IDB
1. Small economies;
2. Small local airlines and airports;
3. Heavily dependent on tourism;
4. International traffic through air transport;
5. Very volatile to external shocks and natural disasters;
6. High Fuel –the region’s fuel price is 14% more than the world average (IATA);
7. High Fares – (intra and inter Caribbean)
8. Virtually non-existent international airline alliances
9. Different Regulations
Abstract
“The Caribbean region is at a development crossroads and its member nations must take significant and concrete steps to improve productivity and competitiveness and face up to global competition if they are to accelerate or even maintain past growth, says a new World Bank report. By taking such steps, they will reposition themselves strategically as an emerging trading bloc for goods and services; without such action, they risk growing economic marginalization and erosion of many of the social gains of the last three decades.”
CARICOM
Multilateral Air Services Agreement (MASA)
•Full market access for CARICOM Air Carriers;
•No restriction on: • Domestic and regional markets
• Tariff/Price setting.
• Frequency
• Capacity
•Multiple designations;
•Cooperative marketing arrangements;
•Multiple ownership among Member States